Up to $280 million in federal grants previously awarded to MARTA are at risk if the Trump administration were to rescind grants that don’t align with its priorities, a MARTA finance official told board members Thursday.
It’s hard to say how likely that scenario is, Deputy CFO Greg Patterson said. But it’s one of a number of contingencies for which MARTA officials are preparing after the new administration’s since-reversed attempt to freeze federal grant funding.
“We’re doing our best to analyze ... what do we realistically see as a possibility to MARTA and what would we do to respond?” Patterson said.
MARTA has closely followed the flurry of executive orders and federal Department of Transportation memoranda issued since President Donald Trump took office, General Manager and CEO Collie Greenwood said. There have been 17 directives applicable to the transit agency so far, some of which have undone earlier actions.
MARTA has $279.9 million in unspent grant money for projects that are underway. Typically, MARTA and other grantees request reimbursement after work is complete, but that money is counted on to cover the full costs of a project. The $279.9 million is what’s left to spend out of a total of $766 million in grants dating back to 2012.
Federal grants are helping pay for projects like transit centers in Clayton and DeKalb counties, renovations at Five Points and Brookhaven stations, the new Summerhill, Southlake and Campbellton rapid bus routes and an upgrade of MARTA’s train control systems.
Based on the federal announcements so far, MARTA staff are concerned awards could be rescinded if the projects don’t align with the current administration’s priorities. While Trump has rescinded his executive order freezing federal grants, the issue is still being litigated in the courts.
So far, agencies have been told to remove any focus on racial equity, climate change and diversity, equity and inclusion, Patterson told the board. They’ve been told instead to prioritize economic development, family and community benefits and cost/benefit analyses.
Most of the awarded projects broadly mention racial equity, climate change or DEI, MARTA spokesperson Stephany Fisher said.
“Although a potential byproduct, none of the awarded projects were specifically implemented to address or combat racial equity, climate change or DEI,” Fisher said in an email. “The awarded projects are focused on improving transit service delivery and customer experience.”
As a transit agency designed to get vehicles off the roads, mitigating climate change is a large part of what MARTA aims to do. Several of its 36 federal grants involve sustainability efforts, such as grants to buy electric buses and for electric vehicle conversion. One of its largest awards is a $26 million grant to replaced older buses that use compressed natural gas.
Equity is also a factor in many projects, and part of MARTA’s mission statement.
Grant agreements haven’t been formalized for an additional $89 million worth of projects. MARTA staff anticipate there could be delays in executing those agreements and when the transit agency could begin using that money.
Beyond the potential for current grants to be revoked, MARTA officials said the priority shift could affect the agency’s competitiveness when it comes to receiving future grants. To win funding, MARTA will need to change its approach to focus on the areas the Trump administration has prioritized, Patterson said.
It remains unclear how a new directive to prioritize funding to communities with birth and marriage rates higher than the national average would affect MARTA or other Atlanta-area grant applicants.
Patterson said MARTA is in the process of reevaluating its priority list of capital projects. It’s top priorities aren’t likely to change: If federal funding evaporates, MARTA would likely divert local funding to support the top priorities.
But in that scenario, other projects lower on the priority list would be deferred to accommodate the difference, Patterson said.
MARTA is also making a backup plan to replace operating costs now covered by federal grants, he said. MARTA has a $38.1 million grant balance to support preventative maintenance.
The transit agency also plans to “aggressively” pursue nonfederal grant sources.
“That can augment our revenues so we can continue to operate like normal to the extent that we can,” Patterson said.
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